Message #23 From:
Stock News Bot Date: November 27, 2006 06:00:00 AM
DWRI News Nasdaq Grants Design Within Reach, Inc. Additional Filing Extension
SAN FRANCISCO--(BUSINESS WIRE)--Design Within Reach, Inc. (Nasdaq:DWRI) today announced that the Nasdaq
Listing Qualifications Panel has granted the Company continued listing
on The Nasdaq Global Market. Design Within Reach’s
continued listing is subject to certain conditions, including the
following: (1) on or before January 15, 2007, the Company must file its
quarterly report on Form 10-Q for the period ended July 1, 2006, as well
as any necessary restatements of prior periods; and (2) on or before
January 26, 2007, the Company must file its quarterly report on Form
10-Q for the period ended September 30, 2006. The Panel has advised the
Company that should it be unable to meet the deadline, it will issue a
determination to delist the Company’s shares
from The Nasdaq Stock Market.
The Company previously reported that it received notice on November 14,
2006 from The Nasdaq Stock Market, Inc. Listing Qualifications Staff of
an additional basis of non-compliance with the Nasdaq rules due to the
Company’s failure to file its quarterly report
on Form 10-Q for the quarter ended September 30, 2006 on a timely basis.
The Company previously reported its delay in filing its quarterly report
on Form 10-Q for the quarter ended July 1, 2006.
Design Within Reach’s late filings of its
quarterly reports on Form 10-Q for the quarters ended July 1, 2006 and
September 30, 2006 are due to turnover in management in the finance
department and the previously disclosed material weaknesses in internal
controls over financial reporting, which resulted in the Company’s
inability to complete the reconciliation of a difference between the
accrued inventory sub-ledger and the general ledger. The difference
between the general ledger and the sub-ledger arose in connection with
the implementation of the Company's IMARC inventory and sales system and
inadequate training of finance personnel with respect to changes in
procedures necessitated by the change in systems.
Until the Company completes the reconciliation of the imbalance
affecting its accrued inventory account, the Company will not be able to
file its quarterly reports on Form 10-Q for the quarters ended July 1,
2006 and September 30, 2006. The Company continues to work diligently to
complete the reconciliation.
About Design Within Reach, Inc.
Design Within Reach, Inc., founded in 1998 and headquartered in San
Francisco, is an integrated multi-channel provider of distinctive modern
design furnishings and accessories. The Company markets and sells its
products to both residential and commercial customers nationwide through
the DWR catalog, studios, website and direct sales force, and a single
common “in stock and ready to ship”
inventory.
“Design Within Reach”
is a registered trademark of Design Within Reach, Inc.
This press release includes forward-looking statements, including
statements related to anticipated revenues, expenses, earnings,
operating cash flows, the outlook for Design Within Reach’s
markets and the demand for its products. Factors that could cause Design
Within Reach's actual results to differ materially from these
forward-looking statements including the following: we may be required
to revise our reported results of operations as a result of our ongoing
reconciliation of the accrued inventory account and our third-quarter
closing process; if we are unable to continue to increase our net sales
while reducing our promotional discounts, our profitability may be
impaired; if we fail to offer merchandise that our customers find
attractive, the demand for our products may be limited; we do not have
long-term vendor contracts and as a result we may not have continued or
exclusive access to products that we sell; our business depends, in
part, on factors affecting consumer spending that are not within our
control; our business will be harmed if we are unable to implement our
growth strategy successfully; the expansion of our studio operations
could result in increased expenses with no guarantee of increased
earnings; if we do not manage our inventory levels successfully, our
operating results will be adversely affected; we depend on domestic and
foreign vendors, some of which are our competitors, for timely and
effective sourcing of our merchandise; declines in the value of the U.S.
dollar relative to foreign currencies could adversely affect our
operating results; and we face intense competition and if we are unable
to compete effectively, we may not be able to achieve and maintain
profitability. Please refer to our reports and filings with the
Securities and Exchange Commission, including our latest Annual Report
on Form 10-K and Quarterly Report on Form 10-Q, for a further discussion
of these risks and uncertainties. We also caution you not to place undue
reliance on forward-looking statements, which speak only as of the date
they are made. We undertake no obligation to update publicly any
forward-looking statements to reflect new information, events or
circumstances after the date they were made or to reflect the occurrence
of unanticipated events.
